Evaluation of the GEF Strategic Priority for Adaptation

Transcription

1 Evaluation of the GEF Strategic Priority for Adaptation july 2011 Full Report

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3 Global Environment Facility Evaluation Office Evaluation of the GEF Strategic Priority for Adaptation July 2011 (The main conclusions and recommendations of this evaluation were presented to the GEF Council at its November 2010 meeting.) Evaluation Report No. 61

4 2011 Global Environment Facility Evaluation Office 1818 H Street, NW Washington, DC Internet: gefeo@thegef.org All rights reserved. The findings, interpretations, and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the GEF Council or the governments they represent. The GEF Evaluation Office does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the GEF concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The GEF encourages dissemination of its work and will normally grant permission promptly. ISBN-10: ISBN-13: Credits Director of the GEF Evaluation Office: Robert D. van den Berg Task Manager: Claudio Volonté, Chief Evaluation Officer, GEF Evaluation Office Evaluation Team: Sandra Romboli, Task Team Leader, Evaluation Officer, GEF Evaluation Office; Joana Talafré, Senior Consultant; Sara Trab Nielsen, Consultant Editing and design: Nita Congress Cover photo: Flooded mangroves in Belize, by Sara Trab Nielsen, Consultant, GEF Evaluation Office Evaluation Report No. 61 A FREE PUBLICATION

5 Contents Foreword... v Acknowledgments... vi Abbreviations... vii 1. Conclusions and Recommendations Conclusions Recommendations Observation Background and Approach Background Approach Key Terms and Definitions Limitations Analysis of the SPA Portfolio Portfolio Composition and Evolution Distribution of SPA Financing and Projects by Agency Distribution of SPA Financing and Projects by Region Linkages of SPA Projects to the GEF Focal Areas Thematic Coverage Portfolio Maturity and Project Lengths Analysis of SPA Guidance Key Elements of the SPA Operational Guidelines Relevance of the SPA to the GEF Mandate Relevance of the Portfolio Effectiveness Adaptation and the GEF Focal Area Strategies Project Design Analysis Project Composition and Typology Assessments of Elements of Project Design Comparative Project Analysis iii

6 6. Results Overview of Key Results Achieved Lessons from SPA implementation to Date Management of the SPA Portfolio Selection and Review of SPA Projects Coordination Portfolio Monitoring and Learning References Box 5.1 An Example of Climate Change Argumentation in SPA Projects Figures 2.1 Flowchart of the SPA Evaluation Process SPA Financing by Agency Number of SPA Projects by Agency SPA Financing by Region Number of SPA Projects by Region Distribution of SPA Projects by Focal Area Main Themes Addressed by SPA Projects Date of Implementation and Duration of SPA Projects Tables 1.1 Frequently Cited Global Environmental Benefits/Reduction of Threats of SPA Projects by Theme Most Frequently Cited Adaptation Interventions in the SPA Portfolio by Type The SPA Portfolio as of June 30, Scope of SPA Projects by Agency Overview of SPA Portfolio by GEF Agency as of June 30, Focal Area Financing Portfolio Maturity, by Country/Region Global Environmental Benefits as Expected in the SPA Guidelines by Focal Area Frequently Cited Global Environmental Benefits/Reduction of Threats of SPA Projects by Theme Most Frequently Cited Adaptation Interventions in the SPA Portfolio by Type iv Evaluation of the GEF Strategic Priority for Adaptation

7 Foreword In November 2008 the Global Environment Facility (GEF) Council asked the GEF Evaluation Office to perform an evaluation of the GEF Strategic Priority for Adaptation (SPA) pilot program. This evaluation was conducted fully and independently by the GEF Evaluation Office with support from the GEF Secretariat, GEF Agencies, governments, and civil society organizations. The evaluation s purpose was to provide lessons and experiences from implementation of the first climate change adaptation strategy supported by the GEF and thereby assist the GEF Council in making further decisions on adaptation. It included several areas of assessment: z Relevance of the strategy to the GEF mandate and focal areas, as well as to countries national sustainable development and adaptation agendas z Effectiveness of the proposed adaptation measures z Efficiency of project development and management in implementing the strategy z Results of the strategy and projects thus far as well as their sustainability The evaluation was carried out from January to September 2010 by a team from the GEF Evaluation Office accompanied by an independent consultant with experience in adaptation, the GEF focal areas, and evaluation. Twenty-six GEF projects under implementation were reviewed using a common project review protocol, and extensive interviews were completed with stakeholders at several stages of the evaluation process. In the field, two projects in Namibia were visited. The evaluation also included a comparative analysis with nine non-spa GEF projects to assess how these projects addressed, or did not address, climate change and adaptation options. A consultation workshop took place in September 2010 to present the preliminary findings of the evaluation and receive feedback from key stakeholders on possible factual errors and analysis, as well as possible recommendations. The evaluation was presented at the GEF Council meeting in November Upon reviewing the document as well as the management response from the GEF Secretariat and GEF Agencies, the Council asked that the Secretariat continue to manage the implementation of the SPA portfolio and to ensure that mainstreaming resilience and adaptation in the GEF focal areas continues as a means of reducing the risks of climate change impacts to the GEF portfolio. The GEF Evaluation Office would like to thank all who collaborated with the evaluation: its staff and consultants, national coordinators, members of the national steering committees, and the staff from country offices. I would like to thank all those involved for their support and useful criticism. Rob van den Berg Director, Evaluation Office v

8 Acknowledgments This report was prepared by a team managed by Claudio Volonté, Chief Evaluation Officer at the Global Environment Facility (GEF) Evaluation Office. The evaluation team was led by Sandra Romboli, Evaluation Officer, and supported by Joana Talafré, Senior Consultant; Sara Trab Nielsen, Consultant, assisted in the final editing and preparation stages. The evaluation team wishes to thank the GEF Adaptation Task Force, the GEF Secretariat, and the GEF Scientific and Technical Advisory Panel for their support and advice in preparing the evaluation. We are also grateful for assistance in completing the evaluation provided by the GEF Agencies with Strategic Priority for Adaptation (SPA) projects; we are grateful too to the SPA team members at the GEF Secretariat for their cooperation and assistance in collecting all relevant information. Members of the projects visited in Namibia provided full cooperation and actively participated in the logistical support; we acknowledge in particular Chris Brown, Namibia Nature Foundation; Irene Nunes, Desert Research Foundation of Namibia, and Juliane Zeidler, Integrated Environment Consultants of Namibia. The Evaluation Office is fully responsible for the contents of the report. vi

9 Abbreviations ADB Asian Development Bank POP persistent organic pollutant CEO FAO GEF IFAD LDCF M&E chief executive officer Food and Agriculture Organization of the United Nations Global Environment Facility International Fund for Agricultural Development Least Developed Countries Fund monitoring and evaluation SCCF SPA STAP UNDP UNEP UNFCCC Special Climate Change Fund Strategic Priority for Adaptation Scientific and Technical Advisory Panel United Nations Development Programme United Nations Environment Programme United Nations Framework Convention on Climate Change All dollar amounts are U.S. dollars unless otherwise indicated. vii

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11 1. Conclusions and Recommendations As a precursor to operationalizing the climate funds created under the United Nations Framework Convention on Climate Change (UNFCCC) the Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) the Global Environment Facility (GEF) was mandated to finance pilot projects that would demonstrate the practical and successful use of adaptation planning and assessment. To this end, the GEF established the Strategic Priority for Adaptation (SPA) in 2003, dedicating $50 million under its Trust Fund to finance pilot and demonstration projects aimed at helping countries reduce vulnerability and increase adaptive capacity to the adverse effects of climate change in any or a combination of the GEF focal areas. The SPA portfolio comprises 26 GEF projects and programs financed by $48.35 million in SPA funding, $79.28 million in GEF focal area support (for 12 projects), and $ million in other cofinancing support, for a total portfolio value of $ million. Within the SPA portfolio, 17 are full-size projects and 9 are medium size. The three primary GEF Agencies the World Bank, the United Nations Development Programme (UNDP), and the United Nations Environment Programme (UNEP) are responsible for implementing the majority of these projects. The Asian Development Bank (ADB), the Food and Agriculture Organization of the United Nations (FAO), and the International Fund for Agricultural Development (IFAD) implement a total of four SPA projects, accounting for 16 percent of SPA funding. While all SPA funding was approved in GEF 3 ( ), slightly more than half (about 57 percent) of the funding was committed in that replenishment period; the remainder (approximately $20.8 million) was committed under GEF-4 ( ). The SPA reached its financial close at the end of GEF-4 in June In 2008, the GEF Evaluation Office was asked to carry out an evaluation of the SPA; this was completed by mid The evaluation was aimed at providing lessons vital to the success of other adaptation funds, and for consideration by the GEF in tackling climate change adaptation in its other activities. At the time of the evaluation, only 11 projects had passed their midterm mark, and many had not yet commenced implementation. Further, in many cases, the results of adaptation activities are likely to be discernible only after 15 or more years. For these reasons, and because the SPA was a pioneering initiative in the field of adaptation funding, the evaluation was limited to an assessment of the SPA strategy and of the various project design and implementation approaches. 1

12 1.1 Conclusions In its evaluation of the SPA, the GEF Evaluation Office reached the following 10 conclusions. Conclusion 1: All SPA projects fulfilled the GEF requirement of identifying global environmental benefits, explicitly included climate change impacts on these benefits, and are relevant to the GEF mandate. All the SPA projects succeeded in identifying global environmental benefits, although some projects contained clearer definitions than others. The types of benefits identified in SPA projects were similar to those identified in regular GEF projects in line with focal area strategies, strategic objectives, and operational programs in force at the time of project design. All SPA projects are well anchored within GEF practice, guidance, and policies. SPA project documents provide an assessment of the potential impacts of current climate variability and future climate change on global environmental benefits and on development. The level of detail provided varies depending on the availability of information on climate scenarios and vulnerability assessments. The types of global environmental benefits to be expected from SPA projects are not different from those of typical GEF projects, indicating a potentially strong linkage (and potential operational convergence) between resilience and global environmental benefits. Most of the SPA projects (21) claim global environmental benefits in the biodiversity area; 14 claim benefits in the land degradation area. Table 1.1 presents a sampling of the global environmental benefits and threat reductions most frequently cited for SPA projects. Conclusion 2: The $50 million SPA initiative has the potential of providing climate resilience, at varying degrees, to $780 million in project investments. The SPA components showed clear linkages to the projects overall objectives. Consequently, the SPA component of each has the potential to provide climate resilience to the rest of the project. And, because capacity building was a cross-cutting element of the projects in the SPA portfolio, this potential could be further realized in these projects. Some replication of SPA lessons is also possible, as several of these projects belong to larger programs. The set of interventions and major outcomes found in SPA project designs can be classified into three categories and two cross-cutting elements (knowledge management and capacity building). z Policy, regulatory, and institutional activities. These include training, policy revisions, and regulatory activities to ensure that climate change considerations are taken into account in future planning. These activities are targeted at establishing enabling conditions for immediate as well as long-term adaptation. z Technical capacity development and assessments. These include vulnerability assessments, climate models, or climate impact assessments designed to provide technical tools for adaptation. While targeted toward government institutions, these activities are pragmatically focused and usually allow for transition toward on-the-ground measures. z On-the-ground pilot adaptation measures. Most projects in the SPA portfolio contain pilot demonstrations of adaptation measures (practices, technologies, approaches) working on the ground with vulnerable communities and ecosystems. Although these measures tend to be broadly defined in the projects, they usually consist of modifications to natural resource management, ecosystem rehabilitation, and 2 Evaluation of the GEF Strategic Priority for Adaptation

13 Table 1.1 Frequently Cited Global Environmental Benefits/Reduction of Threats of SPA Projects by Theme Theme Biological resources (biodiversity, ecosystem services, and so on) Forests (deforestation, carbon sequestration, buffer zones) Water management (water ecosystems, water availability, and so on) Land management (agriculture, soil management, carbon sequestration, erosions prevention) Benefit/threat reduction yconservation of plant agrobiodiversity yconservation and sustainable use of biodiversity, species conservation in biodiversity hotspots (plants and animals) yconservation of species available for crop improvement ymaintenance or restoration of habitat integrity yreduction of losses in coral reefs, sea grass beds and islands ywetland species conservation yimproved management of protected areas yecosystem integrity ymaintenance of forest resilience yavoided deforestation yavoided fragmentation yavoided fire or fire control and management ycarbon sequestration ymaintenance of ecosystem services such as water retention, filtration, agricultural productivity and habitat ykey ecosystem integrity (forests, coral reefs, mangroves) and services y Maintenance of ecological buffer zones ywatershed integrity yprotection of coral reefs and marine biodiversity ymaintenance of soil fertility yreduced land degradation yreduced erosion ycarbon sequestration ycarbon sequestration in biomass yimproved land productivity yreduced coastal erosion ycarbon stocks in soil and biota some light infrastructural works. Given the relative weight of the SPA contribution to total project budgets (6 percent overall), the adaptation portions of the SPA projects are quite limited in scope. These pilot demonstrations are thus usually very localized, and the investment-type activities limited. z Knowledge management. All the projects in the SPA portfolio contain a plan for gathering and disseminating lessons learned, which corresponds to an objective of the SPA itself as well as to current practice in project development. Knowledge management measures included in project design were either limited to the project itself (a project Web site or an awareness campaign) or extended to regional and global audiences (adaptation learning mechanism, regional forums). z Capacity building. This second cross-cutting element takes various forms depending on whether it is being applied at the policy, technical, or on-the-ground level. Capacity-building project measures include training, policy revisions, local mobilization, and activities designed to strengthen livelihoods for adaptive capacity. 1. Conclusions and Recommendations 3

14 Conclusion 3: The SPA portfolio of projects is diverse with regard to sectors, themes, and focal areas, with an emphasis on biodiversity and land degradation. Analysis of the 26 projects in the SPA portfolio found that 21 addressed biodiversity, 14 involved land degradation, and 5 addressed international waters. This distribution correlates to the global environmental benefits listed in table 1.1. The persistent organic pollutants (POPs) focal area was not represented in the SPA portfolio, and only a few projects included linkages to climate change mitigation. A further analysis of project objectives reveals that, regardless of the focal area under which projects were formally classified, a number of themes recurred in the portfolio, most often related to land management, biodiversity or species conservation, water management, and agriculture. All regions are represented in the SPA portfolio, especially Asia. This emphasis is somewhat at odds with the original expectation that most projects would occur in Africa due to its greater vulnerability to climate change; it is most likely due to the state of demand and capacity among countries and regions at the time of the SPA financing cycle. Conclusion 4: Portfolio projects were developed in accordance with the elements and requirements of the SPA operational guidelines, with some exceptions. The operational guidelines provide basic definitions of the concepts and issues to be addressed through the SPA, basic requirements for project design and eligibility, review criteria, and indicators (GEF Council 2005). The basic requirements and eligibility criteria for SPA projects were the same as are applied to all GEF Trust Fund projects with regard to global environmental benefits, country ownership, sustainability, replicability, and stakeholder participation. All 26 projects were found to be consistent with the objectives of the SPA guidelines, in that they all proposed pilot demonstration activities designed to test adaptation options or technologies. In keeping with the spirit of the SPA as a learning program, all projects also include specific plans for learning and replication. The projects also demonstrate a high degree of country ownership, thorough understanding of baseline conditions, and linkages to national policies and priorities. The projects are also consistent with the objectives of the SPA to reduce vulnerability and increase adaptive capacity. The majority of projects referred to available information on vulnerability, such as national communications or national adaptation programs of action. Although most of the project documents indicated that a vulnerability assessment would be conducted during the project s implementation, in most cases, there is no evidence of participatory vulnerability assessment being undertaken as part of project design. The evaluation found that although such assessment could have enriched the portfolio, it would have also entailed much longer project design phases and potential delays in implementing the SPA. The SPA operational guidelines outline the principle of a double increment, whereby the activities designed to produce global environmental benefits would comprise the first increment, and the second increment would arise from the requirement to ensure the robustness of those global environmental benefits by improving the resilience of the systems concerned (GEF Council 2005, p. 7). The agreement was that costs associated with the first increment would be funded by the GEF focal areas, and those associated with the second increment would be funded by the SPA pilot. This element of the SPA guidelines, the articulation of incremental reasoning, proved more dif- 4 Evaluation of the GEF Strategic Priority for Adaptation

15 ficult to operationalize. Project contributions to global environmental benefits, although relatively well articulated, are often not readily measurable, and many projects reported difficulties with the design of the double increment requirement. According to many of those who were interviewed during this evaluation, this requirement was a constraint on project design, as well as on the selection of adaptation measures: it appeared to limit the scope of possible activities, and there was limited capacity in the system to deal with adaptation issues. Most projects did make the effort to link adaptation measures to potential global environmental benefits, at least theoretically. Projects dealt with the double incrementality reasoning in a number of different ways. In some projects, the adaptation measures were applied directly to the activities targeting global environmental benefits (to make the global environmental benefits more resilient). In other cases, the logic of the project required that the adaptation measure focus on increasing local adaptive capacity or on removing a human-induced threat to the global environmental benefits. Some projects included a few adaptation measures that had no link to global environmental benefits (even though, as noted, all projects contained at least a theoretical articulation of global environmental benefits). Since the creation of the SPA guidelines, practice has moved toward a more flexible interpretation of incremental reasoning. Not surprisingly, in the large majority of cases in the SPA portfolio, the double increment was not calculated, since the activities and components designed to enhance global environmental benefits became mixed with the activities designed as adaptation measures. The focal area cofunding expectations, as spelled out in the SPA guidelines, were not entirely fulfilled. Fourteen projects mobilized funding for adaptation only from the SPA; the remaining dozen projects mobilized funding from other focal areas (some in more than one), reflecting an evolution over time in focal area interest in adaptation and resilience issues. As with articulation of the double increment guideline, many projects had trouble articulating the corresponding set of double indicators specified in the SPA guidelines. In general, the quality and elaboration of monitoring and evaluation (M&E) frameworks varied greatly across the SPA portfolio projects. Some frameworks were highly developed and detailed, including information on baseline data, sources of verification, precise indicator measurement, target values and dates, assumptions, and risks; others remained at a high, summary level. There is limited information on what works well in terms of M&E frameworks and indicators, and what poses difficulties during project implementation. Conclusion 5: Adaptation measures proposed in SPA projects were found to be generally noregrets measures dealing with the management of natural resources. A large number of the adaptation measures contained in SPA projects could be considered noregrets measures, meaning that they would deliver development or environmental benefits regardless of the manifestation of climate change. Table 1.2 provides a list of adaptation measures cited in the SPA projects addressing the top four themes (agriculture, land management, coastal zone management, and water management), and classified according to the three general types of interventions (policy, technical, and on-the-ground). These adaptation measures were found in regular GEF projects as well as in regular development projects, especially those categorized as on-the-ground interventions. Thus, it is primarily 1. Conclusions and Recommendations 5

16 Table 1.2 Most Frequently Cited Adaptation Interventions in the SPA Portfolio by Type Type Intervention Policy, planning, and regulatory Technical capacity On the ground Local development planning, land use planning that integrates CC [climate change], interministerial coordination, awareness raising, local risk management and planning, mainstreaming, policy analysis and review, bottom-up planning processes, ICZM [integrated coastal zone management] planning, land use planning, zoning, coordination. Extension services, training, seasonal forecast and climate predictions, seed insurance schemes, climate modeling, inventories (agro-biodiversity), early warning, risk mapping, hazard mapping (droughts and floods), remote sensing, construction guidelines, zoning, manuals and guidelines on adaptation, disaster risk management, awareness raising, mainstreaming, sand extraction bans, flora and fauna inventories, methodology development and vulnerability assessments, modeling, research, protected area management and extension, risk assessment, global ocean observing system and SLR [sea level rise] monitoring, hydrological assessments and models, including groundwater assessments, decision support tools. Water harvesting, improved grazing, improved post harvest management, improved tillage, terracing, stress resistant varieties (crops and livestock), reforestation, afforestation and revegetation, irrigation, crop rotation, watershed management, fuelwood plantation, alternative energies, economic diversification, fire management and alert, invasive species eradication, mangrove restoration, agro-forestry, sand beach restoration, structural protection measures, climate monitoring and analysis, construction guidelines, risk analysis methods, beach nourishment, groynes and revetments, sand dune stabilization through revegetation, soil conservation, mangrove reforestation, waste management, coral reef comanagement, integrated water management, irrigation. Note: This information is extracted from project documents and is reproduced here unedited. the intent with which a measure is being implemented that differentiates an adaptation measure from other, non-adaptation measures (that is, if it is applied with a climate change perspective or not). Given the rather general way in which adaptation measures were formulated in the SPA projects, it can be inferred that, at the time of project design, knowledge of such measures was at a theoretical level. The lack of technical precision provided in project documentation at the design stage supports this conclusion when compared to design documents for later adaptation projects outside the SPA. The adaptation measures were also found to be similar across focal areas and themes which could be attributed to the fact that projects in the SPA have tended to blend multiple themes together, or it could be the result of a set of underlying assumptions regarding the root causes of vulnerability to climate change. Indeed, most adaptation measures in SPA projects have targeted natural resource uses and management practices at different levels (local, community, and policy), indicating an assumption that an optimal way to reduce vulnerability is by changing human behavior. Analysis of non-spa projects reveals that similar approaches appear to have been implemented for other GEF projects where the sole objective was the protection or creation of global environmental benefits. Furthermore, activities with similar components can be found under SPA and non-spa projects portrayed as pilot adaptation measures in one case, but not in the others. This is especially true for on-the-ground adaptation measures. The most significant difference between SPA and non-spa projects was that activities in the SPA had to be articulated according to climate change vulnerabilities and impacts. However, very few SPA 6 Evaluation of the GEF Strategic Priority for Adaptation

17 projects explicitly demonstrate that this thinking was the basis for the selection of adaptation measures. In this regard, the evaluation found limited evidence to indicate that adaptation options were selected on the basis of dedicated vulnerability assessments or on the basis of broader lists of options from which to choose. Some adaptation measures in SPA project activities differed from those used in other projects in terms of policy, planning, and regulatory framework and technical capacity categories. For example, activities targeting participatory vulnerability assessments and mapping, climate modeling, and technology applications, as well as the demonstration of specific adaptation mechanisms and the early integration of climate change in planning frameworks, were all specific to SPA projects or to the SPA components within broader projects and programs. This finding indicates that the SPA did provide added value in terms of climate change consideration albeit at an earlier stage of adaptation than originally expected, and focused on capacity building and enabling environments. SPA projects presented good opportunities for creating synergies among activities that promote good environmental practices and those that aim at resilience. Thus, with marginal additional investment, SPA projects offer a strong convergence for, and a high potential for win-win-win scenarios achieving benefits in, development, environment, and resilience. Conclusion 6: Results achieved so far have been at the output level; most SPA portfolio projects are either in their early stages of implementation or have not yet started. More than half of the portfolio is in its early stages. At the beginning of this evaluation, 11 projects had not yet started, 4 were in an early start-up phase, 9 were at their midpoint, and only 2 had been completed. As a young portfolio, the SPA has so far generated limited lessons on the implementation of adaptation measures. Therefore, this evaluation can draw only limited conclusions regarding the achievement of the SPA s objectives. The majority of project results delivered to date have been output oriented. Key results achieved with regard to policy, regulatory, and institutional issues include the development of technical studies and vulnerability assessments, national consultations, awareness raising, and the production of technical guidelines. Projects also reported a number of tangible outputs regarding technical capacity, including the deployment of technologies related to climate monitoring and the convening of technical training workshops on specific thematic issues such as climate monitoring, coastal erosion, and health monitoring. Many projects also reported achieving revisions of policy documents to address climate change issues, indicating good progress toward individual projects mainstreaming goals. Given the limited amount of detail provided in implementation reports, it was not possible to derive a consistent understanding of progress regarding on-the-ground adaptation activities. For the few projects that reported such results, these were focused on the delivery of outputs on the ground. For example, for the Namibia-based project Adapting to Climate Change through the Improvement of Traditional Crops and Livestock Farming (GEF ID 2915), 70 water harvesting tanks were distributed, 11 drip irrigation sites were established, and 100 farmers were trained in conservation agriculture. The documentation for two other projects Integrated National Adaptation Plan: High Mountain Ecosystems, Colombia s Caribbean Insular Areas and Human Health (GEF ID 2019) and the global Community Based Adaptation Programme (GEF ID 2774) 1. Conclusions and Recommendations 7

18 referenced the operation of several pilot adaptation activities including two communal systems benefiting 165 people. In some cases, results included progress in delivering some of the physical works envisaged by the projects, such as the dune replanting and stabilization, mangrove rehabilitation, and the dissemination of alternative livelihoods tools and technologies referenced by the Adaptation to Climate Change Responding to Coastline Change and Its Human Dimensions in West Africa through Integrated Coastal Area Management (GEF ID 2614). Project implementation documentation and interviews also noted some challenges specific to the SPA initiative in addition to regular project challenges such as coordination difficulties, particularly where multiple partners and multiple countries were involved. Some project stakeholders highlighted the fact that, because adaptation was a new area of work for many national institutions, projects needed more intensive capacity building and awareness raising from the start, as compared to regular projects. The lack of localized and applicable climate data and models was seen as an obstacle in many projects. Conclusion 7: Despite evidence of mainstreaming of adaptation within the GEF at the strategic level and in project design, certain limitations are preventing fully effective integration. The evaluation found evidence of gradual mainstreaming of adaptation and resilience concepts and measures in the GEF focal area strategies as they evolved from GEF-3 to GEF-5 ( ). For example, the biodiversity, international waters, and land degradation focal area strategies all integrate climate change issues in a more explicit manner in GEF-3, GEF-4, and GEF-5. Some of the GEF-4 projects have also begun to integrate adaptation and resilience concepts in their designs. Climate change is increasingly being recognized as a threat to the sustainability of the GEF portfolio, and addressing it is increasingly recognized as an intrinsic part of protecting or creating global environmental benefits. It is not possible to determine the extent to which this growth in awareness can been attributed to the SPA. However, it is possible to affirm that the SPA has provided some incentive toward this recognition at least at the strategic level since it has contributed to building capacity within the GEF, its focal areas, and among its Agencies on adaptation and climate change. Several factors may prevent the integration or mainstreaming of climate change adaptation and resilience into the GEF s activities from becoming fully effective: z Tangible mechanisms for operationalization, such as the climate change screening tools, are not yet in place, even though this was decided upon already in GEF-4. z Gaps exist in the scientific knowledge related to potential climate change impacts and possible adaptation measures in the GEF global environmental benefit areas; there are also capacity gaps in applying available science. z The GEF system offers few incentives to take climate change impacts and adaptation issues into account, and resources are already limited to deal with demands in each of the focal areas. z Difficulties exist in determining the incrementality of adaptation and in conceptualizing an operational link between adaptation and global environmental benefits. z There is limited collaboration and cooperation among the various GEF-managed funds regarding adaptation and the possibilities of cofinancing, for example. 8 Evaluation of the GEF Strategic Priority for Adaptation

19 Conclusion 8: The SPA portfolio s youth notwithstanding, some lessons can be extracted for the GEF as a whole. Funding made available through the SPA provided a financial incentive for project proponents to explicitly consider climate change impacts, assessments, and adaptation options. SPA projects have allowed for the deployment of early adaptation measures, particularly with regard to capacity building and enabling frameworks. Most SPA projects had not achieved the midterm goals they had set for themselves. Project duration was too short, and in many cases, project strategies were too ambitious given the limited levels of knowledge and capacity. These factors somewhat diminished the opportunities for success. Several SPA projects reported experiencing startup delays for reasons common to other development or GEF projects. However, SPA projects also tended to involve an added degree of complexity for example, by including activities to support several GEF focal area objectives as well as other activities to improve the current situation. Clear and coherent M&E frameworks are essential to the determination of objective lessons from a project given the pilot nature of the SPA. Projects that failed to provide a strong M&E system have also reported difficulties in project management. Conclusion 9: There are weaknesses in the management of the SPA portfolio, but there is still time to correct these. The expectations for SPA management as set forth in the operational guidelines may have been unrealistic, given the level of available resources within the GEF Secretariat, particularly in the early days of adaptation work. A possible shortcoming may partnerhave been introduced by the GEF Secretariat and GEF Council in creating a pilot program without the appropriate level of support to operate according to its guidelines. Other shortcomings were found with regard to the monitoring of projects, gaps in the operationalization of M&E frameworks and in the formal approval, selection, and coordination mechanisms within the GEF Secretariat adaptation team. Regular GEF procedures for project selection, review, and approval were followed for the SPA, as the operational guidelines provided little additional information on these topics from a technical point of view. No institutionalized mechanism for SPA funding distribution across focal areas, regions, or projects was employed; nor were any clear and explicit technical selection criteria and procedures, such as the use of project review committees. Although the funding approach taken appears to have been to allocate funds on a demand-driven, first-come, first-served basis, the delays in committing SPA funds (two projects were still in late approval stages at the time of the evaluation) seem to belie the high demand for adaptation funds. Project review and design appear to have been conducted with varying degrees of technical input, with no explicit process for systematic sharing through the GEF Scientific and Technical Advisory Panel (STAP), for example, or for coordination among GEF Secretariat teams. Collaboration was found to be sporadic and was not formalized; this may represent a lost opportunity to promote integration among the focal areas, which is one of the main purposes of the SPA pilot. Coordination was found to occur informally, which may not be sufficient to ensure the necessary integration of adaptation into the focal areas. As a coordination mechanism for the GEF ship as a whole, the Climate Change Adaptation Task Force a group comprised of representatives from the GEF Agencies and chaired by the GEF Secretariat adaptation team has undertaken an impressive number of functions, although operat- 1. Conclusions and Recommendations 9

20 ing with few resources, especially in the early years. However, the terms of reference for the task force identify numerous management functions that have yet to be fulfilled, such as the development of internal policies to manage the GEF adaptation pipeline and portfolio, and the collection of results from projects. The evaluation found it unrealistic to expect the number of tasks outlined to be actually implemented, in light of the resources available at the time of the task force s establishment. As a learning pilot, the SPA was expected to generate lessons for future adaptation programming within and outside the GEF. The Adaptation Learning Mechanism: Learning by Doing (GEF ID 2557) a global project implemented by UNDP was intended as the key mechanism for achieving this function. However, the program did not specifically focus on SPA projects and lessons as originally intended, effectively leaving the SPA without a dedicated learning mechanism. Beyond project-level monitoring conducted at the Agency level, no portfolio-level monitoring has been conducted of ongoing or completed projects. There is no effective mechanism whereby Agencies project-level monitoring can inform the GEF Secretariat s portfolio-level mechanism. Although no formal process of knowledge sharing was developed, there is evidence of learning and information sharing having occurred as a result of the SPA. For example, GEF Agency and Secretariat personnel all testify to having learned from SPA development and implementation. Conclusion 10: As a learning pilot within the GEF, the SPA has yet to achieve its full effectiveness. The SPA has yet to fulfill its potential as a learning pilot within the GEF, mainly because of a lack of dedicated, established learning and coordination mechanisms. z The Adaptation Learning Mechanism project mentioned above has evolved into a broader initiative than was originally intended. z There has been no SPA portfolio monitoring inside the GEF. z Because of resource constraints, the Climate Change Adaptation Task Force has thus far been focused on pipeline management. Given the relative youth of the SPA portfolio, there is still time and opportunity to begin a process of extracting lessons on how to integrate resilience and adaptation into GEF focal area work. 1.2 Recommendations Recommendation 1: The GEF should continue to provide explicit incentives to mainstream resilience and adaptation to climate change into the GEF focal areas, as a means of reducing risks to the GEF portfolio. Resilience to climate change is an intrinsic part of protecting or creating global environmental benefits given the strong convergence of global environmental benefits, development, and adaptation. As a first step in promoting this resilience, the GEF should provide necessary nonfinancial incentives and tools to operationalize the integration of resilience in its programming. These could include screening tools that are applicable at project design and approval, as well as safeguarding methodologies that will help identify multiple benefits and ensure that climate risks to the GEF portfolio are properly managed. These various tools and techniques should be accompanied by additional technical guidance on articulation of the links between resilience, adaptation, and global environmental benefits, with particular attention to the links and synergies among the various adaptation funds and the Trust Fund. 10 Evaluation of the GEF Strategic Priority for Adaptation

21 A second step could involve the mobilization of financial incentives. Strategic priorities could be created within focal areas that explicitly deal with climate change impacts, vulnerability assessments, and adaptation options to ensure that the risks and opportunities identified through the above mechanisms are addressed operationally and in synergy with the LDCF and SCCF. Recommendation 2: To continue to manage implementation of the SPA, the GEF needs to provide sufficient resources to the GEF Secretariat beyond those dedicated to processing a pipeline of projects. The relative youth of the SPA portfolio indicates that the SPA initiative although fully committed still needs to be managed from within the GEF, particularly if it is to deliver its intended learning results. To this end, the GEF should perform the following: z Develop and implement a full learning framework or strategy to capture lessons, experiences, and progress regarding climate change impacts, vulnerability assessment, and adaptation options to be shared and incorporated into GEF focal areas. This learning framework should include appropriately resourced functions of results-based management, portfoliolevel monitoring, and knowledge sharing and dissemination. z Develop an M&E framework at the portfolio level for the SPA and other funds that facilitates tracking and monitoring of adaptation results throughout the GEF. Recommendation 3: Given that adaptation measures in SPA projects are still under implementation, further evaluations could provide opportunities to learn from outcomes and progress toward impact. The GEF Evaluation Office, the STAP, and the GEF Adaptation Task Force should develop guidelines for conducting midterm or final evaluations with a specific emphasis on how to review, select, and improve adaptation measures; how to screen for risks of maladaptation; and how to identify co-benefits between adaptation, development, and environment. The GEF Evaluation Office should compile information from the final evaluations of SPA projects for its work on the adaptation topic. 1.3 Observation Despite ongoing work, the 2007 GEF Council decision to elaborate screening tools for climate change has yet to be fulfilled (GEF Council 2007a). 1. Conclusions and Recommendations 11

22 2. Background and Approach 2.1 Background The United Nations Framework Convention on Climate Change was adopted in 1992 as a global treaty aimed at reversing climate change trends through the limitation of anthropogenic sources of greenhouse gas emissions. Through this convention, the developed country (Annex I and II) parties committed themselves to helping those developing country parties that are particularly vulnerable to the adverse effects of climate change in meeting the costs of adapting to these adverse effects. 1 At the 6th Conference of the UNFCCC Parties in Bonn in 2001, three adaptation funds were created as a means of responding to this need (Schipper 2006): z The Special Climate Change Fund to support adaptation, technology transfer, energy, transport, industry, forestry, and waste management and activities to assist developing country parties in diversifying their economies z The Least Developed Countries Fund to assist the 48 least developed countries in preparing and implementing national adaptation programs of action 1 Funding under the Convention, Decision 7/ CP7; see change_fund/items/3657.php. z The Adaptation Fund to support concrete adaptation projects and programs in developing country parties to the Kyoto Protocol, financed from a share of Clean Development Mechanism projects At the 7th Conference of the Parties in Marrakech in 2001, the GEF was given the responsibility of managing the first two funds. Before these funds were operationalized, however, the GEF was mandated to finance pilot projects that would demonstrate the practical and successful use of adaptation planning and assessment. In response, the GEF established an adaptation fund under its Trust Fund, Piloting an Operational Approach to Adaptation, funded with an initial allocation of $50 million. The Strategic Priority for Adaptation was approved by the GEF Council in November A series of draft operational guidance documents for the SPA were subsequently circulated to the Council; these were finalized in March The SPA aims at reducing vulnerability and increasing adaptive capacity to the adverse effects of climate change in any or a combination of the GEF focal areas: biological diversity, climate change, international waters, land degradation, ozone layer depletion, and POPs. It does so by supporting pilot and demonstration projects that simultaneously address local adaptation needs and generate global environmental benefits. All SPA projects are funded based on the incremen- 12

23 tal cost principle and include project preparation grants, project grants, and Agency fees. While all SPA funding was approved in GEF 3, slightly more than half (about 57 percent) of the funding was committed in that replenishment period; the remainder (approximately $20.8 million) was committed under GEF-4. The SPA pilot reached its financial close in June 2010, at the end of GEF-4; all of its resources are now fully allocated. 2 The lessons that can be extracted from the pilot are critical to the development of other adaptation funds and in further consideration of how the GEF needs to tackle adaptation issues in its other activities. To this end, the GEF Evaluation Office was asked in November 2008 to conduct an independent evaluation of the SPA pilot to be submitted at the November 2010 GEF Council meeting. It was expected that the lessons learned from implementation of the SPA as the first operational adaptation funding mechanism would assist the Council in making further decisions on adaptation. 2.2 Approach The GEF Evaluation Office prepared an approach paper to guide the SPA evaluation (appendix A). 3 This paper set out the objectives and methods to be used in the evaluation process, and was circulated to key stakeholders for comment and input; it was finalized in March The SPA evaluation is guided by an overarching question: What can be learned from this pilot program in terms of climate change adapta- 2 The last $2 million is intended for two regional projects being implemented through the ADB in the Coral Triangle, but has not yet been formally allocated. 3 The appendixes to this report are available on CD-ROM and on the GEF Evaluation Office Web site ( tion within the GEF focal areas, the resilience of these projects, and the effectiveness of the adaptation measures that have been applied so far? The main objectives of the evaluation were to z assess the SPA strategy and its implementation, z assess the SPA projects, and z identify lessons on how to increase the resilience of adaptation measures in the GEF. Several key areas of interest regarding future strategy and project development in the GEF are listed under each of these objectives, including the following: z The relevance of the SPA strategy to the GEF, its focal areas, and mandate; to national sustainable development agendas; and to international financing for adaptation, including via the LDCF, the SCCF, and the Adaptation Fund z Assessment of incorporation of the adaptation measures in the design of projects and the effectiveness of those that started implementation z Lessons from project M&E systems z Dissemination of lessons and learning mechanisms put in place for the SPA portfolio Because the SPA is a pioneering initiative in the field of on-the-ground adaptation funding, the evaluation focused on gathering lessons, identifying examples of learning, and assessing the design of projects in the SPA portfolio. The data sets used in the evaluation are both qualitative and quantitative in nature. A mixed-method approach was used to strengthen the analysis through triangulation. The SPA evaluation was undertaken in a series of steps as presented in figure 2.1. A literature review focusing on adaptation measures related to the GEF focal areas and the cur- 2. Background and Approach 13